The midfielder was a target of former United manager David Moyes, who attempted to sign him in the dying days of last summer's transfer window. His successor, Louis van Gaal, is also said to be an admirer and has given United the go ahead to complete his signing.

Van Gaal, currently leading the Netherlands at the World Cup, is determined to succeed in the transfer market where Moyes failed. Herrera could be joined at Old Trafford by left-back Luke Shaw, but Southampton are demanding up to £40m for the teenager.

However, United have monitored the Spaniard's progress and are now willing to pay the higher fee, with the price reportedly set to rise again after June 30 as Herrera enters the final year of his contract.

Bilbao are notorious for playing hard ball in the transfer market, refusing to negotiate below their players' buy-out clauses. Such is their resistance that Herrera's buy-out clause can climb to £32m.

Herrera, 24, is a Spain team-mate of United's David de Gea and Juan Mata and has played with them since his time in the Under-21s squad. He is set to be the first in a new generation of United players, with several senior men from Sir Alex Ferguson's reign stepping down. Rio Ferdinand, 35, is understood to have agreed to join QPR after 12 years at United.

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